Savings and investment products

There are lots of ways to make the most of your cash in your life after divorce even if you don't have very much left over after you have paid all your bills and everyday expenses.

Starting with the basic saving products which practically risk free but will produce modest returns.

Savings accounts at banks and building societiesWith a straightforward savings account you will get back all the money you have paid in plus some interest. There is a wide range of accounts from which to choose and there will be big differences between them.

National Savings and Investments These are products supported by the government. Any investment you make is completely secure. National Savings and Investments offer guaranteed returns on your money on a range of products as well as a number of other investment vehicles including premium bonds.

Mini Cash ISAs (Individual Savings Account) These are offered by most banks and building societies as a tax free way to save and invest your money. The amount you are allowed to put into a Mini Cash ISA is limited in any one tax year. There is no risk involved. To open an ISA account you must be over sixteen years of age and a UK resident.

Credit Unions A credit union is a mutual financial organisation which is owned and run by the members which save with it and who have a common bond such as a workplace or membership of a housing association. These are becoming more popular as they provide a low cost savings and borrowing facility which meets modest needs locally and fairly.

Investment products come in a variety of forms with varying degrees of risk.

ISAs (Individual Savings Accounts) ISAs offer tax free returns on investment which can be made up of cash and/or longer term investments such as stocks and shares. No tax is paid on the interest or investment income (dividends) from an ISA apart from 10% tax credit deducted from dividend payments before you get them. Neither is Capital Gains Tax due on profits from investments in an ISA. The amount you can pay in is limited during any tax year.

Shares Buying a stake in a company is known as buying shares. If the company trades well then the value of the shares is likely to rise.If the company performs well payments will be made to shareholders in the form of dividends.

The value of shares can also fall as well as rise and could, in certain unfortunate circumstances, loose nearly all their value.

Bonds Loans to the government, a company or a local authority are called bonds. Interest is paid at a fixed amount and their value can rise and fall as they are traded on the stock market.

Pooled or collective investments These type of investments are made up of lots of small contributions from different people to make one investment fund. They include various types of funds including ISAs and Unit Trusts.